The yields on CDs are a function of:

Question

Quizplus · Accepted Answer

The yields on Certificates of Deposit (CDs) are influenced by the credit rating of the issuing bank, the maturity of the CD, and the supply and demand for CDs. The credit rating affects the perceived risk, which in turn influences the interest rate offered. The maturity of the CD affects the yield, with longer maturities typically offering higher yields to compensate for the increased risk of interest rate changes over time. Supply and demand dynamics in the market also play a crucial role in determining the yields on CDs. The back-up line of credit is not directly related to the yield on CDs.

The Yields on CDs Are a Function Of